The Blockchain project is led by Core Development team based in Toronto, Canada under the guidance of Christian Reinerts. It was founded by Consensuses, a non-profit research and development firm based in Europe. The Blockchains project was initiated during the year 2009 with the intention to make available real time, traceable and secured financial transaction history from any computer around the world. The concept is not a new one but has been made accessible to users at a lower cost and in a more convenient manner. Transactions can be sent via email and chat using an Internet enabled device.
The term “blockchain” refers to the distributed ledger software which is designed to track and secure the transfer of digital currency. A single computer system is used to perform this action rather than a central server. The use of the word “decentralized” is meant to describe a unique feature of the Blockchains technology. This system is designed to have no single point of control or authoritative role. Blockchains are open to everyone because they are designed as open source software that anyone can easily contribute to or develop.
Unlike regular databases, which are separated into thousands of pieces, the Blockchains are designed as block chains. This allows each user to connect to the entire network without needing to know or control the private key of any previous block. Each user is able to transact with anyone else in the network without the need to break the security or privacy of the previous block. The system is completely decentralized, which is to say that each user in the network holds no asset or private key.
The major difference between the traditional databases and the Blockchains is that, with the former, a user may be able to see all of the past transactions that have happened on the ledger while, with the latter, only recent block transactions are visible. The ledger has to be updated regularly in order to keep up with the growing number of transactions. This is a process called “proofing” and is only possible when the ledger is decentralized. The proofs of this happen on a continuous basis, which is why most Blockchains are secured by Proof of Stake (PoS). The increased level of security and privacy provided by the Blockchain makes it ideal for businesses wishing to secure their transactions and keep track of their employees’ activities.
Apart from being used as a ledger, the Blockchains can also be used as Distributed Ledger Technologies (DLT). Distributed Ledger Technology is a type of smart contract technology that enables participants in a transaction to agree on and instantly execute certain tasks or programs. There is no need for a central administrator or anyone with authority over the system. Instead, the transactions are processed by users themselves through self-service interfaces. This is in stark contrast to traditional databases, which allow for centralization of decision making processes and data maintenance leading to problems like data corruption and data mismanagement.
A major use of the Blockchain technology is probably most evident in the “blockchain tokens”. These include bitcoins, ether and other digital currencies. Unlike traditional money, which can be lost or stolen, bitcoins and other such tokens cannot be destroyed. They are safe assets that can be easily and quickly transferred between parties with complete trust in the system, without the need for a third party or intermediary.